The Battle Of The Clothing Boxes

The online personal styling business might’ve been a solid bet during the ZIRP era, but it has really taken a beating in the post-pandemic world. Today, we heard from Stitch Fix and ThredUp, battling for survival in the public markets. đŸ“Ļ

First up, Stitch Fix reported a $0.29 per share loss on $330.40 million in revenues. Both numbers missed estimates of a $0.22 loss and $330.88 million. Looking ahead, the company’s third-quarter revenue guidance of $300 to $310 million also missed expectations. đŸ”ģ

On the positive side, the company has no bank debt and about $230 million in cash, so it has some time to figure things out. But with cash flow from continuing operators at negative $26.10 million, investors aren’t being as patient as the company might hope they’d be.

$SFIX shares are down about 12.50% after the bell, nearing all-time lows. 📉

Competitor ThredUp had a mixed report, with a $0.14 per share loss and revenues of $81.40 million. Earnings were $0.01 shy of expectations, while revenue beat by about $1 million.

The company expects full-year 2024 revenue of $340 to $350 million, while Wall Street anticipated $343.10 million. Despite that, $TDUP shares are still down about 6.50% after the bell as investors assess the company’s long-term viability. 🤔

With these companies experiencing weak or declining revenues and margins, investors are looking for some sort of turnaround plan from management. So far, there’s not been much to grab onto, especially with many other stocks and industry groups performing so well. 👎

As always, we’ll have to wait and see. But for right now, the boxed clothing companies are battling it out for survival.

Learn More About...

More in   Earnings

View All

CrowdStrike Bucks The Cyber Selloff

After Palo Alto Networks and other cybersecurity stocks failed to meet expectations, the market highly anticipated CrowdStrike’s earnings after the bell. And unlike its peers, the company delivered big time, so let’s take a look. 👇

Adjusted earnings per share of $0.95 beat expectations of $0.82, while revenues of $845 million topped the $839 million anticipated. Notably, the firm has reported GAAP net income for the past four quarters, and management expects that trend to continue. đŸ’ĩ

Read It

$NET Makes The Bears Regret

Network provider Cloudflare is surging after the bell following better-than-expected results. 📝

The company’s adjusted earnings per share of $0.15 on $362.50 million in revenues topped estimates of $0.12 and $353.10 million. YoY revenue growth of 32% was consistent with its third quarter, while its GAAP net loss narrowed significantly from the year prior.

Read It

Cyber Stocks Get Clocked

Palo Alto Networks is getting pounded by sellers after hours, dragging the rest of the sector down with it. Let’s see what happened. 👇

The cybersecurity giant reported adjusted earnings per share of $1.46 on revenues of $1.98 billion. Unfortunately, that’s where the good news ended.

Read It

Investors Arm Portfolios With Semis

After missing out on last year’s tech run, many investors are choosing not to risk that feeling again. As a result, they continue to pile into stocks in the semiconductor industry and related fields. Arm Holdings joined the fray today, jumping sharply after reporting results.

The chip design technology giant reported third-quarter adjusted earnings per share of $0.29 on $824 million in revenues. That topped estimates of $0.25 and $761 million. 🤩

Read It